Psychic Distance Refers to

question 58

Multiple Choice

Psychic distance refers to

• A)how similar two national markets really are.
• B)how similar managers believe two national markets to be.
• C)how similar two competitors are.
• D)the sum total of differences among markets where a multinational firm operates.

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Definitions:

Demand Schedule

A table that lists the quantity of a good that consumers are willing to purchase at different price levels.

Profit-Maximizing

A strategy or point at which a business operates to achieve the highest possible profit given its production costs and market conditions.

Marginal Revenue

The incremental revenue earned by selling one more unit of a good or service.

Inelastic

Describing demand or supply that is relatively unresponsive to price changes, meaning the percentage change in quantity is less than the percentage change in price.